Preparing To Get A Dental Practice Loan? Read This First
In this world of economic upheaval, it’s getting harder and harder for anyone to get a business loan. Banks are saying “no” to people right and left. Luckily, if you’re a doctor, the banking industry won’t make you jump through quite as many hurdles to get a loan as other professions because they see your work as valuable. Still, there are a few steps that should be taken to make sure that you’re able to get the dental practice loan that you need. Not following any helpful tips could lead to your loan being turned down.
To start the process, you may want to fill out a loan summary that outlines your pertinent loan information. It should include the purpose of the loan, its amount, collateral, debt service coverage, type of business, your credit score, debt to worth ratio, and your management experience. Also, include any supporting paperwork to back up your loan summary. As the saying goes, “First impressions count”, especially in the banking arena. It’s always best to be prepared for any questions or requirements that the banks may have when you apply for a dental practice loan.
No matter the type of loan that you’re looking for; whether it’s a business loan, a home loan, or a personal loan, you want to approach as many lenders as possible. By increasing the number of bankers you connect with, you increase your chances of having your loan approved. It also gives you the opportunity to look for the best rates, the lowest monthly payments, and the longest repayment terms. If you’re short on time, you might be able to find a company that will do some of the legwork for you. If you do, find one that will make sure that your credit report isn’t requested until both you and the banker want to move forward. Not doing so could cause numerous credit report requests, which could lower your credit score and delay your dental practice loan.
When a banker has requested additional information, be sure to respond to them in a timely manner. Everyone is busy, and if the banker doesn’t hear from you promptly, they will either lose interest or they will wonder if you are really serious about the plans that you have for your practice. Aside from presenting all of the necessary paperwork, you also have to be your own salesperson and talk enthusiastically about your practice. If you can’t speak positively about your business, who will?
As a dentist, you may have been thinking about how to take your business to the next level. Your vision of expanding your existing practice or purchasing new state-of-the-art equipment can be realized with an approved dental practice loan.